Mike Novogratz, spoke with Bloomberg about the recent rally of Bitcoin and the capitulation that many people are going through with the plunge in the prices. He also touched on Bitcoin being the store of value for the future and compared it to the gold market.
Novogratz said that his company has been busy with asset management, OTC trading, and advisory businesses even though the market has been taking hits. He added that it was tough getting money from outside investors, but that it would get easier as institutions step in.
He agreed that the cavalry was coming in and added:
“I’ve always said that we needed institutional custody and in January Fidelity opens up their shop, which is institutional custody, in January Bakkt, which is ICE’s and NYSE’s opens up their shop.
And when I talk to those two groups, they’ve got customers lined up to start. So I really do think by February, March or April, you’re gonna see institutions dipping thier toes and getting into this space”
Touching on the current price of Bitcoin, Novogratz said that it cannot rise to a point between the $3,000 and $6,000 range in the foreseeable future, but he said that the bottom is close by. He also added that many people are capitulating and stated:
“And quite frankly, in the last few days, we’ve seen big capitulation both in price and from some big spokesmen, Brian Kelly who’s been a big advocate of crypto, turned bearish on the lows, those are usually good signs that the end is close.”
Referring to his earlier comment about how all the gold ever mined in history could fit into two-and-a-half Olympic-sized swimming pool, he said that it could be a 20-meter cube and said that it was mind-boggling that was worth a massive $8 trillion.
“If you bought Bitcoin two years ago vs the S&P or any other asset, you’re still up more, if you bought Bitcoin two years ago vs gold, you’re still up more, if you bought Bitcoin a year ago, quite frankly, you’re up more.
So, you’ve got to sometime step back from the immediate and look at the slope we’re going on, it’s actually close to a miracle that some guy created a program and 10 years later still has $80 billion of value as a digital store of value, that got David Swenson from Yale to invest in it, that got Abby Johnson from Fidelity to say “we’re gonna build business over in crypto”.
So it’s easy to smash it right now, but if you step back and look at it in a broader perspective its pretty cool”